Work disruptions inflict losses to CPI by Rp 2 trillion
Monday, September 11 2000 - 04:00 AM WIB
The increasing protest, strike, road blockage, rig hostage, arsons and various campaigns against oil company PT Caltex Pacific Indonesia (CPI) will inflict losses to the company by Rp 2 trillion a year, mainly from the losses of production potentials.
The company's communications and public relations manager Poedyo Oetomo told Riau Pos on Sunday that various production disruptions had cost the company to lose some 15,000 barrels per day (bpd) to 30,000 bpd, at the value of between Rp 1 trillion to Rp 2 trillion a year.
"We are very concerned with this and compelled to disclose this. This level of losses is only a conservative projection because that figure is calculated from the loss of crude production potentials of between 15,000 bpd and 30,000 bpd," Poedyo said.
Earlier, Caltex's vice president on human resources, Suwito Anggoro, reported the same figure of potential production losses of between 15,000 to 30,000 barrels per day, at the value of between Rp 1 trillion to Rp 2 trillion a year.
Suwito noted: ``Strikes happen once in every two weeks, followed by burning and looting besides protests. Besides, there are also demands for land compensation. Those all influence our production," he said.
And Caltex's managing director Gary Fitzgerald has sent a letter to Riau governor, with copies addressed to the Riau police chief and military chief, asking for helps.
Poedyo said that all negative campaigns against Caltex, such as strike, road blockage, taking rigs hostages, stealing, burning Caltex facilities, strike and other forms of protests have affected works in Caltex and eventually affected crude production level.
Poedyo said Caltex's annual crude production level averaged 746,000 bpd in 1999, while production level in the first eight months of this year averaged only 700,000.
With the assumption that oil prices averaged US$25 a barrel, and the rupiah's exchange rate stood at Rp 8,000 a dollar, then Caltex's potential losses would reach between Rp 1 trillion and Rp 2 trillion a year. If crude oil prices average at $28 a barrel, and the rupiah's exchange rate stay at over Rp 8,000 a dollar, then the potential losses in rupiah will be much higher.
Poedyo noted that all related parties must offer helps in finding the solution because the losses would also affect Caltex's contribution to the central government and Riau administration. (*)